Why does IB not rebate for adding liquidity to ECNs? My bet is that it is because they actually keep the rebates themselves. Or, perhaps they donate them to charity. Maybe you were expecting me to ask the name of your broker so you could get a shameless promotion in, without actually soliciting/advertising?

Because they don't charge any ECN fees. I love there simple commissions with no BS and no added fees. A penny a share up to 500, and 1/2 a penny after that - nothing else. No ticket charge, no ecn fees, no cancelation fees, no NYSE fees, no software fees, etc. etc. I hope they don't change a thing - unless they lower their commissions even more. There are places that offer the rebate and charge the fees, if this structure is better for you.

Originally posted by beaburt It just seems just and fair that the trader who is in fact responsible for the addition of liquidity would also be entitled to the rebate. Am I missing something here???

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No, you are not missing something. What IS just and fair however, is you choosing what broker you want to trade through. Besides, justice and fairness are two different concepts (without getting too deep into semantics). Bottom line, if you do not like IBs Liquidity Rebate policy, either do not open an account or close the one you already have. Better yet, start your own ECN and charge whatever fees the market will support.

I think Don covered this before when people asked
him why he doesn't rebate traders for liquidity.

The reason is BECAUSE they don't charge for ECN fees.
If a broker charges you for ECN pass-through fees
(in addition to ticket charges) and then rebates you
part of those fees, would that make you feel better?

Don made an offer to charge anyone ECN fees and then
rebate them for liquidity.

You can't get it any cheaper then IB commissions.
The only thing lacking is their support.
Recently, reliability is not as stable as before.